US stock index futures edged higher in overnight trading on Wednesday as investors hoped that the winner of the US presidential election would be determined soon.
Dow Jones Industrial Average Futures rose 20 points, or 0.04%. S&P 500 futures were up 0.18%, while Nasdaq 100 futures were up 0.64%.
Late on Wednesday, NBC News predicted that former Vice President Joe Biden was the winner in Wisconsin and Michigan, both states that President Donald Trump had won in the 2016 presidential election. How to win 17 votes by the Electoral College, NBC News reported on Wednesday.
“The markets are reacting very positively to the fact that much of the uncertainty has passed. Not all, but at least the worst results seem to have been avoided. The school hates uncertainty and this can be a breeze for Brad McMillan, chief investment officer at Commonwealth Financial Network.
Even when the president’s electoral election wasn’t clear, stocks rallied broadly during Wednesday’s trading as hopes for a green wave in Congress dipped, something some would argue will be a gust of wind. major sectors of the market including Big Tech.
“It looks like we’re going to see a divided, historically based, stock market hobby,” said Lindsey Bell, investment strategist at Ally Invest. “You can see this expectation priced into the market [Wednesday] with healthcare, media and technology stocks leading the market. “
On Wednesday, the Dow ended the session with a 367.63 point gain, or 1.3%. At the intraday high, an average of 30 stocks rose 821 points. The S&P 500 rose 2.2 percent, while the Nasdaq Composite rose 3.9 percent.
The US stock surged in spite of the continued election results following record number of voters, as well as a spike in absenteeism when people were at home amid the Covid case count. -19 spike.
Trump’s election campaign said it would seek a recount in Wisconsin, while earlier on Wednesday it announced that it would initiate lawsuits to suspend the tally in Michigan and Pennsylvania. Late on Wednesday, the campaign also said it filed a lawsuit in Georgia that requires all of the counties there to separate incoming ballot ballots from other ballots, “which were cast in conjunction with other ballots. France. “
Trump on Wednesday night tried to erroneously declare victories in Pennsylvania, Georgia, North Carolina and Michigan. NBC News has yet to name the battlefield states Pennsylvania, Georgia and North Carolina. Trump’s comments followed his claim in the early hours of Wednesday that he had won the race, despite the fact that millions of votes had yet to count.
Late Wednesday afternoon, Biden said in a speech in Wilmington, Delaware that he was hoping to win the election. The Democratic candidate’s comments follow his campaign manager Jen O’Malley’s remark that Biden will be “the next president of the United States.”
Meanwhile, the Democrats are expected to retain control of the House, while the toppling of the Senate is increasingly unlikely.
“Without the green wave, we are likely to see the Senate remain highly divided, which would limit the policy choices of whoever wins the presidency. That could rule out anyone. said that any significant tax activity, as well as restricting any action to control itself, said Commonwealth Financial Network’s McMillan.Facebook rose 8.3% on Wednesday, while Amazon and Alphabet rose more than 6%. each Apple and Netflix are up 4% and 2% respectively.
However, some strategists note that a controversial election, nothing worth discussing at this time, could lead to a sharp decline in stocks in the short term.
“More than anything, the market is looking for a peaceful transfer of power. Social instability or a disputed election can cause some,” said Don Calcagni, chief investment officer at Mercer Advisors. out a significant increase in volatility.
Senate Majority Leader Mitch McConnell said on Wednesday that passing further stimulus measures would be the house’s top priority when it re-convenes, though analysts warned that otherwise. the green wave, the package will be less than the $ 3 trillion that Democrats are looking for.
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